IBM reported quarterly earnings Monday that beat estimates but revenue that fell short of expectations, as currency and a declining legacy business dampened growth in key ventures like cloud computing.
Shares fell about 4 percent in extended trading after the technology company posted second-quarter adjusted profit of $3.84 per share on $20.81 billion in sales. Those were both down 13 percent from the prior-year period.
Analysts had expected the company to report earnings of $3.78 a share on $20.95 billion in revenue, according to a consensus estimate from Thomson Reuters.
IBM's crucial "strategic imperatives"—made up of cloud computing and analytics—saw revenue growth of about 20 percent. A cloud sales increase of 50 percent boosted the segment.
"We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business," said Ginni Rometty, IBM's president and CEO, in a statement.